What will Powell say during his March press conference?
Short Answer
Both the model and the market overwhelmingly agree that Powell will say "Good Afternoon" during his March press conference, with only minor residual uncertainty.
1. Executive Verdict
- Powell expected to align with the FOMC's steady rate policy.
- Powell will likely interpret the 'low-hire, low-fire' labor market.
- The FOMC will critically analyze core PCE amidst robust growth.
- Stronger-than-expected February CPI could prompt a hawkish stance.
- Robust February Jobs Report signals a tight labor market.
- Strong PMIs could indicate robust economic expansion.
Who Wins and Why
| Outcome | Market | Model | Why |
|---|---|---|---|
| President | 44.0% | 42.5% | Market higher by 1.5pp |
| Trump | 10.0% | 8.5% | Market higher by 1.5pp |
| Median | 97.0% | 96.0% | Market higher by 1.0pp |
| Good Afternoon | 97.0% | 96.0% | Market higher by 1.0pp |
| Consumer Confidence | 16.0% | 42.7% | The initial market probability of 15.5% was revised upward based on moderate (Grade B) evidence from resilient consumer spending (PCE), which creates a bilateral conflict with the market's core pessimism rooted in sticky inflation and a hawkish Federal Reserve. |
Current Context
Recent FOMC minutes reveal a steady federal funds rate. The release of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday, February 18, 2026, provided insights into the January meeting where the target range for the federal funds rate was held at 3.50% to 3.75% [^]. Market participants are scrutinizing these minutes to understand the rationale behind the decision and any hints about future policy. Chair Powell's press conference following the January 28, 2026, FOMC meeting addressed the improved economic outlook, resilient consumer spending, and the impact of tariffs on inflation [^]. Federal Reserve Governor Stephen Miran concurrently voiced concerns on February 18, 2026, that the current tight monetary policy risks slowing U.S. growth, suggesting rates might be tighter than necessary [^].
Economic indicators and expert views shape rate cut expectations. Investors and analysts are keenly monitoring various economic indicators, particularly the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, with its next report due on Friday, February 20, 2026 [^]. December's headline PCE stood at 2.9% year-over-year and core PCE at 3.0% year-over-year, largely reflecting goods inflation boosted by tariffs, with expectations for an uptick in the upcoming data [^]. Labor market conditions are also a major focus, including the unemployment rate (4.4% in December 2025), low total non-farm payrolls, and whether the market is stabilizing or cooling [^]. The overall strength of the economy and consumer spending, which Powell noted has "surprised us with its strength," along with GDP projections (median 1.7% rise), are closely watched [^]. The impact of tariffs on goods prices and overall inflation is a significant analytical point, with expectations that tariff-related inflation could peak around mid-2026 [^]. Expert opinions highlight a split among FOMC members regarding future rate cuts, with some favoring more cuts and others suggesting holding steady or even considering increases if inflation persists [^]. Barclays analyst Pooja Sriram expects headline and core PCE to increase 0.4% month-over-month, breaking a run of subdued prints [^]. Powell himself indicated that inflation has "evolved broadly as expected but remains somewhat elevated," with a focus on goods prices and tariffs [^]. Raymond James Chief Economist Eugenio J. Alemán has noted Powell's defense of the Fed's independence from political intervention [^]. A common question is whether the Fed will cut rates in March, following three consecutive cuts in late 2025 and January's steady hold [^]. The December 2025 "dot plot" projected just one more cut for 2026, though this remains data-dependent [^].
Upcoming events and ongoing concerns guide future policy dialogue. The next Federal Open Market Committee (FOMC) meeting is scheduled for March 17-18, 2026, and will include a press conference by Chair Powell and the release of the Summary of Economic Projections (SEP), detailing Fed officials' economic forecasts and interest rate "dot plot" [^]. Powell has repeatedly stated that policy is not on a preset course and decisions will be made on a meeting-by-meeting basis, guided by incoming data and the balance of risks [^]. Key concerns include the Fed's assessment of inflation, especially concerning tariffs, with Powell indicating that if tariff effects on goods prices peak this year, it could signal scope for loosening policy [^]. The ongoing tension between the Fed's dual mandate of maximum employment and stable prices remains a key discussion point, given a strong economy but "somewhat elevated" inflation [^]. Powell acknowledged that consumer surveys are "downbeat" despite "reasonably good spending data," attributing public unhappiness to the price level [^]. While upside risks to inflation and downside risks to employment have diminished, they still exist, and high uncertainty about the economic outlook is noted [^].
2. Market Behavior & Price Dynamics
Historical Price (Probability)
Outcome probability
Date
This prediction market has demonstrated a modest downward trend overall, starting at a 54.0% probability and currently trading at 44.0%. The chart is characterized by a period of extreme volatility in early February. The most significant movement was a massive 38.0 percentage point spike on February 6, 2026, which saw the price jump from 6.0% to 44.0%. This dramatic shift is attributed directly to social media commentary from a former president, indicating the market is highly sensitive to political pressure on the Federal Reserve. This was followed by an additional 8.0pp spike the next day, though the specific catalyst for this secondary move is not detailed in the provided information. Since this volatile period, the price has settled back to the 44.0% level.
From a technical perspective, the price has established a trading range between a support level near 35.0% and a resistance level at its starting high of 54.0%. The current price of 44.0% is a critical pivot point, representing the level of consolidation after the major news-driven spike. The total traded volume of 5,982 contracts suggests moderate market participation. The pattern of sharp price movements, contrasted with periods of stability, implies that volume and conviction are concentrated around specific catalyst events rather than consistent daily trading. The market sentiment appears to have shifted from initial optimism to a more neutral, wait-and-see approach, having absorbed the political shock and now digesting recent, somewhat conflicting, economic signals from FOMC minutes and Fed Governor commentary without a strong directional bias.
3. Significant Price Movements
Notable price changes detected in the chart, along with research into what caused each movement.
Outcome: Trump
📉 February 07, 2026: 9.0pp drop
Price decreased from 23.0% to 14.0%
What happened: I am unable to provide information about events that will occur in the future, including social media activity, news, or market movements on February 7, 2026. My knowledge cutoff is designed to prevent me from generating speculative or inaccurate content about future events. Therefore, I cannot identify the primary driver of the prediction market price movement you described.
Outcome: President
📈 February 06, 2026: 38.0pp spike
Price increased from 6.0% to 44.0%
What happened: The primary driver of the 38.0 percentage point spike in the "President" outcome of the "What will Powell say during his March press conference?" prediction market on February 06, 2026, was controversial social media activity from former President Donald Trump [^]. On that date, Trump posted a widely condemned video on Truth Social depicting Barack and Michelle Obama as monkeys, sparking a significant political outcry [^]. This highly publicized event, which involved the presidency and generated widespread media attention, would have substantially increased the likelihood of Federal Reserve Chair Jerome Powell needing to address the broader political climate, presidential influence, or the independence of the Fed during his upcoming press conference [^]. This social media activity by Donald Trump directly coincided with the price move and placed the topic of the "President" at the forefront of public discourse, thereby becoming the primary driver of the prediction market's shift [^].
4. Market Data
Contract Snapshot
The provided text, "What will Powell say during his March press conference? Odds & Predictions 2026," is a market title/description. It does not contain the specific contract rules, such as what triggers a YES or NO resolution, key dates/deadlines, or special settlement conditions. Therefore, it is not possible to summarize these details from the given content.
Available Contracts
Market options and current pricing
| Outcome bucket | Yes (price) | No (price) | Implied probability |
|---|---|---|---|
| Good Afternoon | $0.97 | $0.05 | 97% |
| Median | $0.97 | $0.05 | 97% |
| Expectation | $0.96 | $0.06 | 96% |
| Projection | $0.96 | $0.05 | 96% |
| Balance of Risk | $0.95 | $0.07 | 95% |
| Uncertainty | $0.86 | $0.18 | 86% |
| Unchanged | $0.86 | $0.18 | 86% |
| Layoff | $0.85 | $0.22 | 85% |
| Restrictive | $0.83 | $0.21 | 83% |
| Anchor / Anchored | $0.80 | $0.22 | 80% |
| Balance Sheet | $0.77 | $0.25 | 77% |
| AI / Artificial Intelligence | $0.75 | $0.28 | 75% |
| Softening | $0.73 | $0.28 | 73% |
| Shutdown / Shut Down | $0.68 | $0.36 | 68% |
| Tariff Inflation | $0.64 | $0.37 | 64% |
| Pandemic | $0.62 | $0.41 | 62% |
| Goods inflation | $0.61 | $0.41 | 61% |
| Credit | $0.51 | $0.55 | 51% |
| President | $0.44 | $0.59 | 44% |
| Dissent | $0.39 | $0.65 | 39% |
| Probability | $0.35 | $0.71 | 35% |
| Beige Book | $0.33 | $0.70 | 33% |
| QT / Quantitative Tightening | $0.31 | $0.73 | 31% |
| Recession | $0.29 | $0.74 | 29% |
| Volatility | $0.27 | $0.75 | 27% |
| Tax | $0.24 | $0.78 | 24% |
| Dot Plot | $0.23 | $0.79 | 23% |
| Yield Curve | $0.20 | $0.84 | 20% |
| QE / Quantitative Easing | $0.18 | $0.85 | 18% |
| Renovation | $0.18 | $0.84 | 18% |
| Pardon | $0.17 | $0.84 | 17% |
| Consumer Confidence | $0.16 | $0.85 | 16% |
| Gold | $0.13 | $0.91 | 13% |
| Stagflation | $0.12 | $0.89 | 12% |
| National Debt | $0.11 | $0.92 | 11% |
| Bitcoin | $0.10 | $0.93 | 10% |
| Trump | $0.10 | $0.93 | 10% |
| Gas / Gasoline / Natural Gas | $0.09 | $0.93 | 9% |
| Kalshi | $0.09 | $0.98 | 9% |
| Lawsuit | $0.09 | $0.92 | 9% |
| Trade War | $0.09 | $0.95 | 9% |
| ADP | $0.08 | $0.93 | 8% |
| Soft Landing | $0.08 | $0.93 | 8% |
| Egg | $0.05 | $0.97 | 5% |
Market Discussion
Discussions surrounding Jerome Powell's March press conference largely center on the Federal Reserve's stance on interest rate cuts, with a key debate between those expecting continued caution due to persistent inflation and a robust labor market, and those anticipating a more accelerated pace of cuts [^]. Commentators are closely analyzing the updated Summary of Economic Projections (dot plot) for signals on future rate cut forecasts, as well as projections for GDP and unemployment, while also considering how potential fiscal policies, such as tariffs, might influence inflation and the Fed's decisions [^]. Overall, experts anticipate Powell to emphasize a data-dependent approach, highlighting the uncertainty in the economic outlook and the need for sustained evidence that inflation is moving towards the 2% target before significant policy adjustments [^].
5. Decoding Powell's March 2026 FOMC Alignment Amidst Policy Divergence?
| Federal Funds Rate | 3.50%-3.75% (January 2026) [^] |
|---|---|
| January 2026 YoY CPI | 2.4% (Core 2.5%) [^] |
| March 2026 Rate Pause Probability | 92-94% (Polymarket) [^] |
Federal Reserve Chair Jerome Powell is expected to mirror the cautious majority's steady rate stance. At the March 2026 press conference, Powell is anticipated to align with the FOMC's cautious majority by maintaining the federal funds rate steady. His previous remarks emphasized policy is "well-positioned" and decisions are "meeting-by-meeting" [^], reflecting broad support for a pause after three rate cuts in late 2025 [^]. This prevailing stance directly counters dovish calls for immediate easing, such as Governor Christopher Waller's dissent for a 25 basis point cut due to concerns about overly restrictive policy and rising labor market risks [^]. The committee's primary concern remains inflation, with some members even open to further rate hikes [^].
Recent economic data supports maintaining a cautious monetary policy approach. January 2026 year-over-year CPI moderated to 2.4% (2.5% for core), but the month-over-month core increase of 0.3% remains elevated [^]. The labor market shows resilience, with unemployment at 4.3% and solid job growth of 130,000 nonfarm payrolls [^], undermining arguments for immediate easing. This stability allows the Fed to prioritize ensuring inflation is fully defeated [^]. Prediction markets reinforce this outlook, pricing a 92-94% probability of no rate change in March, reflecting successful forward guidance from the Fed [^].
6. How Will Powell Frame U.S. Labor Market Contradictions?
| ADP Private Payrolls (Jan 2026) | Increased by 22,000 jobs [^] |
|---|---|
| BLS Total Nonfarm Payrolls (Jan 2026) | Increased by 130,000 jobs [^] |
| Unemployment Rate (Jan 2026) | 4.3% [^] |
Labor market data suggests a 'low-hire, low-fire equilibrium.' Federal Reserve Chair Jerome Powell is expected to interpret the apparently contradictory U.S. labor market data as a successful 'soft landing.' While private payroll gains have slowed significantly, with ADP reporting an increase of only 22,000 jobs in January 2026 [^], the unemployment rate remains low at 4.3% [^]. This scenario indicates businesses are slowing their hiring pace but are reluctant to lay off existing workers, thereby maintaining economic stability without widespread job losses.
Powell will emphasize structural shifts and data uncertainty. Chair Powell is anticipated to highlight structural shifts, such as constrained labor supply, as key factors rather than solely attributing current conditions to cyclical weakness [^]. He will likely acknowledge the significant divergence between employment reports like ADP's private sector employment [^] and the BLS's total nonfarm payrolls [^]. This acknowledged data uncertainty is expected to support a cautious, 'wait-and-see' policy stance, reinforcing the Fed's perspective that the economy is transitioning towards a more balanced and sustainable state.
7. How Will the Fed Differentiate Inflation Drivers at March FOMC?
| Core PCE Price Index MoM Forecast | 0.4% (Barclays) [^] |
|---|---|
| US GDP Growth Forecast 2026 | Approximately 2.0% year-over-year (Barclays) [^] |
| Tariffs Contribution to Core PCE Inflation | Approximately 0.4 percentage points (St. Louis Fed) [^] |
Upcoming FOMC meeting addresses core PCE amidst robust growth. The Federal Reserve's March 18, 2026, FOMC meeting will critically analyze the Personal Consumption Expenditures (PCE) Price Index. Barclays forecasts a 0.4% month-over-month and 3.0% year-over-year increase for the Core PCE Price Index [^]. This presents a key challenge for Chair Jerome Powell, who must distinguish between persistent, demand-driven inflation and potentially transitory price adjustments caused by new tariffs. The broader macroeconomic context includes robust US GDP growth, projected at approximately 2.0% for 2026, alongside persistent core PCE inflation [^]. Factors contributing to this inflationary environment include AI-related capital expenditure, fiscal tariffs, labor constraints, and increased energy demand [^].
Powell's communication balances past lessons with current analysis. Chair Powell's communication strategy is informed by the 2021-2022 "transitory" inflation episode, when he eventually "retired" the term as inflation proved more persistent [^]. However, he has since reapplied the concept to specific shocks like tariffs, emphasizing the importance of their effects' persistence and the stability of inflation expectations [^]. The Federal Reserve employs sophisticated analytical frameworks to decompose inflation into components, differentiating between common demand, category-specific demand, and supply shocks [^]. For example, tariffs were estimated to contribute about 0.4 percentage points to core PCE annualized inflation during June-August 2025 [^], demonstrating the Fed's capability to potentially "look through" certain tariff-induced price increases.
Powell will likely signal conditional tolerance for tariff inflation. During the March 18 press conference, Powell will likely signal a conditional tolerance for tariff-related inflationary effects, framing them as a one-time price level shift rather than a change in the ongoing inflation rate. He is expected to stress data-dependency, focus on potential second-round effects, and reiterate the dual mandate, also considering tariffs' potential negative impact on economic activity [^]. The overall policy implication is anticipated to be a "hawkish hold," reinforcing the "higher for longer" interest rate environment. While initial market reactions might be volatile, sophisticated analysis will likely confirm the Fed's commitment to combating persistent demand-driven inflation while selectively absorbing specific supply shocks, avoiding premature rate hikes or cuts.
8. What Are the Chances of a Hawkish Shift in Fed Rhetoric?
Market consensus strongly favors a federal funds rate hold. Despite prediction markets like Polymarket showing a 92.8% probability [^] and Kalshi corroborating with 94% [^] for no change to the federal funds rate, underlying economic indicators present a more complex picture. Core Personal Consumption Expenditures (PCE) inflation remains elevated at 3.0%, while GDP growth is resilient at approximately 1.8-2.0% [^]. This combination of persistent inflation and robust growth could provide the Federal Open Market Committee (FOMC) with justification for a more hawkish communication stance, even with the unemployment rate at 4.4% [^].
Chairman Powell's communication strategy emphasizes maximizing policy optionality. This approach allows the FOMC to respond flexibly to incoming economic data without being constrained by market expectations. Powell's previous statements confirm policy is considered 'appropriate' but 'not on a preset course,' intentionally leaving room for future adjustments [^]. A strategic linguistic pivot by Powell to reintroduce the prospect of future rate hikes, distinct from indicating imminent action, could serve multiple purposes: appeasing hawkish committee members, managing market expectations by disrupting the prevailing 'hold versus cut' narrative, and reinforcing the Fed's inflation-fighting credibility, particularly in the unique institutional context of 2026.
A linguistic pivot to reintroduce rate hikes is a mispriced tail risk. While actual rate hikes in March are highly improbable, the analysis concludes that the probability of Powell reintroducing the language of future hikes is a non-trivial tail risk that is materially mispriced by the market [^]. This calculated move would allow the Fed to maintain optionality and underscore its commitment to the 2% inflation target, especially if disinflationary progress stalls. Such a scenario, estimated to be in the 15-25% range, would likely surprise market consensus and is largely contingent on incoming data.
9. How Will PCE and Employment Data Influence March 2026 FOMC Decisions?
| Powell's December 2023 Stance | Opened door to rate cuts [^] |
|---|---|
| Dec 2023 Q&A Remark | Rate cuts "a topic of discussion" [^] |
| Market Reaction to Dec 2023 Q&A | Traders priced in more 2024 rate cuts [^] |
The Personal Consumption Expenditures (PCE) report is expected to have the most direct and quantifiable impact on the Federal Reserve's March 2026 Summary of Economic Projections (SEP), primarily influencing core inflation and interest rate forecasts. However, the Employment Situation report holds a greater potential to create a notable divergence between the Federal Open Market Committee's (FOMC) formal statement and Chair Jerome Powell's real-time policy signaling during his press conference Q&A session. A substantial deviation in labor market data, specifically, could compel Chair Powell to provide forward guidance that reshapes market expectations, drawing parallels to communication dynamics observed in late 2023 [^].
SEP updates are systematic; conflicting data can reveal FOMC divisions. The SEP's projections are systematically updated based on incoming economic data. Historically, upside surprises in core inflation data correlate with hawkish revisions to the SEP's federal funds rate projections, potentially leading to the removal of previously anticipated rate cuts. Conversely, a weak employment report, such as negative Non-Farm Payrolls or a significant jump in the unemployment rate, would typically result in downward revisions to GDP growth and upward revisions to unemployment rate forecasts, thereby creating a dovish impulse. Should these two key economic reports present conflicting signals, it could lead to significant dispersion within the FOMC's individual forecasts, potentially masking deep divisions within the resulting median "dot plot."
Powell's Q&A offers nuance, shaping market expectations beyond formal statements. Chair Powell's press conference functions as a two-part event, comprising prepared remarks that reflect committee consensus and a subsequent Q&A session where he can offer a more nuanced interpretation and respond to real-time market dynamics. The December 2023 press conference serves as a key precedent, where Powell acknowledged during the Q&A that rate cuts were "a topic of discussion" for the committee [^], a remark widely perceived as more dovish than the formal statement. This strategic pivot led markets to aggressively price in more rate cuts for 2024 than the dot plot implied, demonstrating the Q&A's role as a credible forward-looking signal [^]. If the March employment data proves unexpectedly weak while the PCE report continues to signal persistent inflation, Chair Powell is likely to use the Q&A to emphasize labor market softening, thereby signaling the Fed's readiness to address potential recession risks.
10. What Could Change the Odds
Key Catalysts
Jerome Powell's statements during his March 18, 2026 press conference will heavily depend on upcoming economic data, potentially leading to a more hawkish stance if the economy shows resilience. Key bullish catalysts that could signal a "higher for longer" interest rate environment include stronger-than-expected February CPI data indicating persistent inflation [^], a robust February Jobs Report suggesting a tight labor market [^], and strong February ISM Manufacturing and Services PMIs pointing to robust economic expansion [^]. Additionally, resilient consumer spending, as indicated by strong January Retail Sales, could further support a restrictive monetary policy tone [^].
Conversely, a more dovish stance from Powell, suggesting potential interest rate cuts sooner, could emerge if economic data points to a slowdown or disinflationary trends. Bearish catalysts include a notable deceleration in February CPI data [^], a weaker February Jobs Report indicating a cooling labor market [^], and ISM PMIs showing contraction or significant slowdown in business activity [^]. Softening consumer demand, as reflected by lower-than-expected January Retail Sales, would also contribute to a dovish outlook [^]. Furthermore, any unexpected financial instability or major geopolitical shocks could prompt the Fed to adopt a more cautious and accommodative tone [^].
Key Dates & Catalysts
- Expiration: March 19, 2026
- Closes: March 19, 2026
11. Decision-Flipping Events
- Trigger: Jerome Powell's statements during his March 18, 2026 press conference will heavily depend on upcoming economic data, potentially leading to a more hawkish stance if the economy shows resilience.
- Trigger: Key bullish catalysts that could signal a "higher for longer" interest rate environment include stronger-than-expected February CPI data indicating persistent inflation [^] , a robust February Jobs Report suggesting a tight labor market [^] , and strong February ISM Manufacturing and Services PMIs pointing to robust economic expansion [^] .
- Trigger: Additionally, resilient consumer spending, as indicated by strong January Retail Sales, could further support a restrictive monetary policy tone [^] .
- Trigger: Conversely, a more dovish stance from Powell, suggesting potential interest rate cuts sooner, could emerge if economic data points to a slowdown or disinflationary trends.
13. Historical Resolutions
Historical Resolutions: 50 markets in this series
Outcomes: 17 resolved YES, 33 resolved NO
Recent resolutions:
- KXFEDMENTION-26JAN-SUBP: NO (Jan 28, 2026)
- KXFEDMENTION-26JAN-LAWS: NO (Jan 28, 2026)
- KXFEDMENTION-26JAN-RENO: YES (Jan 28, 2026)
- KXFEDMENTION-26JAN-PRES: NO (Jan 28, 2026)
- KXFEDMENTION-26JAN-YIEL: NO (Jan 28, 2026)
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